Banco de Portugal has lowered the recommended limit on the debt-service ratio for new mortgage loans.
Banco de Portugal tightens the rules on access to mortgage credit
Access to mortgage credit has become more demanding. Since 1 August, Banco de Portugal has reduced the maximum recommended debt-service ratio for new loans from 50% to 45%, tightening the criteria banks use when assessing a client's financial capacity.
The new rules also bring changes for borrowers aged between 30 and 35, who may now take out a mortgage with a maximum term of 40 years. Financing limits remain unchanged: up to 90% for a primary residence and up to 80% for other purposes.
The measure comes against a backdrop of credit growth and rising house prices, and seeks to reduce the risk of excessive borrowing. Existing contracts are not affected.
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